tv Countdown to the Closing Bell FOX Business January 16, 2013 3:00pm-4:00pm EST
[ male announcer ] how do you make 70,000 trades a second... ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. liz: two major stories involving stocks you might own. thethey're dominating the den wall street. boeing sliding on yet another glitch with the 787 dreamliner, but money flowing into banks thanks to a blowout quarter for goldman sachs.
good afternoon, everybody. it is the last hour of trading, welcome to "countdown to the closing bell." we have a breaking news story today. battlbattle of the financial ti. two billionaires against each other. carl icahn the "wall street journal" just breaking the story has taken a long stake in herbalife. look at this intraday picture. the hedge fund manager is a guy who has said you know what, i will short this stock. getting hammered the past couple of days. today it started off that way until the news just broke that carl icahn is jumping in and saying herbalife, i am in. the stock is well off of the lows of the session now down two-thirds of a percent. had been down 1.8% earlier today. just about 13 minutes ago at about nine minutes to the hour. wwe're watching herbalife right now. turbulence at boeing. a top analyst out in front.
we also have ol goldman stellar quarter. and stocks are mixed. weakness in the dow jones industrial. so much of that has to do with boeing. so what is the story? boeing is the biggest drag on the dow jones industrial pulling it down by more than 20 points. getting clipped by about three and change%. another dreamliner safety issue in response japan airlines grounding their entire fleet of 787 today. particularly noteworthy because these two airlines own the largest numbers of this aircraft. on the other side, he optimistic side, investors are bidding on financials. goldman sachs and morgan stanley are moving higher. a new 52-week high hitting q4 earnings in sales blew away wall street's estimate. investment banking revenue
jumping for goldman. on top of that we have jpmorgan had a big beat on the bottom line. cough it up to 50%. banks with jpmorgan releasing some of the loan loss reserves. morgan stanley moving higher, quick check of they want to keep it up-to-date on jpmorgan. jpmorgan up about a half a percent at the moment. now let's get to apple in terms of beaten up. check out apple jumping $22 at the moment, that is back above the $500 share level by $8, but it is notable. apple making headway in china, introducing some new payment plans for buyers of iphone and macbook laptops. that comes with a price margins sacrificed struggling to keep up with cheaper devices. translations, at least some, you
have love of phones in asia very expensive, value smart phones. let's go to the floor show. providing some list and a little optimism in the financial. so let me ask these guys why are the markets so ho-hum. you would think aside from boeing would have a little bit more. >> you would think so, but i don't think this is a bad showing. republicans seem to be putting a lot of pressure from the inside on the republicans who will vote to stop holding us hostage with the spending cuts to the debt ceiling. people are starting to feel a little bit more optimistic that might be less of an issue going forward. i still think it is a great focus people are afraid. we're pretty complacent and the volumes are really waiting to see what will happen in washington, i think. liz: charlie, you're looking at
13.25, again, another historic low for the volatility index. it is not telling me anything. what indicators to look at as a trader in the pit? >> i look at moving averages. take a look, the s&p has really held on to the moving average and a few breaks every time it has bounced off, you're doing pretty well. you look at what came out midsession today, and we're going sideways to a little higher. business activity is kind of sideways, you mentioned the housing market is starting to show some signs of life. if we can get the bankers doing quite well in terms of the stock, but in terms of generating the loans, we went from one end of the pendulum to free money and anybody who wants it to really constricting and
making refinances quite hard as well as i just purchased a new home, i went through so many hoops to get the purchase in terms of having different appraisers come in, so it has gone the other way again. liz: to your point, we have the ceo of pinnacle financial. they were named by forbes as one of the most trustworthy. they did very good at many different levels. this is a thank you want to hear from. i know oil is about $94 per barrel. what is the next? >> it has kind of been ho-hum. the volatility has come way in. we didn't go anywhere, settling
above $94. liz: it means you speculate, no? >> seems nobody wants to take a stand because a lot of questions going forward. with policy in washington. in the back of people's minds is to have geopolitical things the middle east. liz: let's not just toss that aside. we have a situation at a gas plant owned in part by bp where there are some 40 hostages, three of them are american. this is a developing story in these situations we get very concerned about giving incorrect information, so we're keeping it cool that the moment it appears to be a terrorist attack at these hostages, this is serious. does that affect the price of energy right now? >> to the backs of peoples minds. we have not heard much news about that on what is going on, but we will hear some stuff overnight tonight but options
off the board, the market was flat. i think stay long and stay technical if you want a direction above 91 and a quarter. $95 if something develops, you might see some stocks. liz: good to see all of you. joining us in the floor show. would you buy it, would you fly it? two questions we're asking about boeing today after yet another issue with the 787 reminder. the stock down three and change%. this is the entered a picture, but it has been a rough couple of days. first there is this on your screen, this current piece of equipment that clearly got smoky, caught fire, overheated, one had to make an emergency landing in japan. this next analyst was well ahead of the curve downgraded the company last week.
joining me now in a fox business exclusive. let's talk about your downgraded last week where you have concerns about this where you felt it was more than a glitch, they would be more problems to come, how did you know what brought you to that point? >> the fight was a fire. the incident involved when they would bring them onto the airplane and in our experience having worked in an aircraft manufacture as well, we felt because it was electrical there was tremendous risk something like this would happen again and as much as we like to think we were pressed on last night's incident we didn't think it would be that soon, but there it was. this is what will move boeing stocks for the next several months. active investigations going on now. we would have the chinese. we feel this thing is likely
getting out of their control. tracy: we just showed one month or two or three month chart plummeting only one month. that was the first incident and then it came up again and plummeted on the second incident. here comes another issue with japan airlines so you say if i already own the stock you say don't do anything, just hold on versus selling it? >> we are still in the camp long-term boeing will work through this issue, but in instances like this would make it more and more difficult and increase the risk of the stock but we are currently a hold on stocks. liz: i look at some of the specs on this thing, they have twin jets on their edge in case something happens. there are four redundancies on this battery. looking at the instruments, predictive windshear, i look at
this and i say this is a great company. lockheed martin, some names people perceive as competitors here. but this is much safer when you look at accidents in automobiles than it is to draw up a car. >> that has always been the case in the airline business. people will throw out the term it is safe. multiple levels of redundancy and more importantly the department to shed loads and put it on sort of a battery in this case at least get the airplane safely on the ground the matter what happens. liz: am i showing my age? what would make you switch to a buy? >> it'll be a little bit tougher because this will be slow going with an active investigation. we need a lot more especially
since we have had another incident with so many variables we are looking at, that will be a tough one. liz: he was out front saying to watch out, hold still and this one, has been very volatile and might continue to be. thank you very much. but take away is he said the aircraft in general is safe, just for looking from an investment standpoint it will be a rocky, turbulent flight. what are the best tech and social media plays for your portfolio in 2013? chief innestment officer knows a thing or two about technology, he was a star analyst at lehman brothers and is now running a hedge fund. but he is betting big on facebook and mark zuckerberg. but also, what is his second favorite place for the year? not just his first, which is facebook. get a pen and paper.
liz: not a pretty day for the power mover of the hour. chipotle mexican grill. falling $16, still $280 stock but investors may be losing their appetite for the fast food chain which is a favorite of our crew because there is one across the street. the line, you see everybody we know in our crew in the line including my floor director. it is that, his soft taco? everybody loves the burrito bowl. don't worry, chipotle read shares are down today because they're getting squashed despite reporting a 4% rise in same-store sales in the fourth quarter. food inflation, those prices taking a toll on margins. if you look at this stock since about march, it has been a very problematic around july and august with a big fall, and the move as ugly as a one-year chart
looks, i want you to see the three year because it is not so bad. not as bad as it has been since three years ago. save me a bite. now he is eating like to meet with his fingers. fine. indigestion not just taking place at chipotle, other food stocks as well. nicole petallides also chowing down. nicole: i wish. he better leave two bytes. i would much rather have chipotle or even some buffalo wild wings or something from panera bread. i had a boring salad with just let this. buffalo wild wings down, panera bread also lower. they are down with chipotle. and this is all because they showed higher cost for food. they have seen their sales and
traffic slowing. the growth has been slowing, that is not good news and it does not vote well for any fast food chain. one thing i want to note about an arab red is catering. and chipotle will get into catering. trying to get into the lunch business. that may ultimately help them. back to you. liz: facebook. they made a big announcement about the big surprise. they generated a lot of buzz and some of it was "that's it?" we're looking at the stock today, it is up but simply by three pennies. no real lift from that announcement yesterday. the stock has certainly come a long ways from the ipo days as they pile in. it fell way down, but chief investment officer says not only does he like it, he loves it.
it is his favorite stock for 2013. he joins me to tell me why he feels that way about facebook but we will pick your brain on a couple of other sectors and names you like in a minute. yesterday built this thing up for days and days. shibani joshi said don't get too excited. it was searched but simply on the website itself. were you disappointed or do you still love the stock right now? >> the company itself did not say anything about what it was, the media got itself in a frenzy over it. if you look at what they introduced, it was a good step into search, just in the u.s., just in the desktop, just a prototype. but it is a great business for them to start getting into. what you will see as i am rolling out the full offering later this year, and you should see them move into mobile and then move into the global market.
you think about the size of a search opportunity. obviously you have google and you have facebook with no revenue from search, but there are about a billion queries per day on facebook. liz: can they monetize the social search in any shape or form? >> let's say you want to see a movie so you go ahead and you go into your network on facebook and you ask your friends or you go ahead and say what movies are good? a bunch of search results back and disney can go ahead and put a little added underneath their movies and results like on google. it is not any different when you're searching for a restaurant, a movie or whatever you're looking for. travel destination, etc. the results will be based on what are your friends, what do they like? the results will be more customized to you where google is not quite getting customized results, they're getting what everybody likes to see and that
may not fit your preferences. liz: let's talk about why we find your perspective very interesting because lester you did not like this stock. we love to hate it, now you just love it. this is incredible, you feel very strongly about this. if there were one thing that you absolutely adore about this and telling people enough to buy it at $30, what is it? how high does this thing go? what is your energy about it? >> when it came public i began shorting it the moment it opened. the reason was really simple, they only had one engine of growth and that was advertising on the desktop, that was it, and people were moving to accessing facebook on mobile and tablets, but the attitude of senior management of the company, really nothing wrong with it, they were interested in building a great product, they were not interested in making money. you can read mark zuckerberg's
letter before they went public, laid it all out for you and everybody decided to ignore what he had to say. then the stock got cut in half. at that point they started to focus on how do we make money? what have you seen since then? you have seen mobile sponsored newsfeed. it will probably do 2 billion this year. they just launched that in december 11, less than a month, or about a month ago and will be 100 million now. liz: i made 10 to 20 million on these instant gifts. i also like to get your second best idea. we changed our view investors saying that only does he like facebook, he will give a second best idea as well. you like the semiconductor base. the names are not necessarily be household names like intel, what is your favorite name?
>> at one point intel almost went bankrupt in the early 80s. intel wasn't the intel we know today. the company i like the best today is one of the top 20 semiconductors in the world but very few people have heard of it. called onn semiconductors. for these guys, they have really had the perfect storm of problems. they bought a business in japan, and then you had the earthquake in japan, and operations got hit with flooding in late 2011 and most importantly you have global growth could cut in half from 4% to less than 2% equity this year. they have been caught in all of this. the good news is their business has started to get better. continuing to get better since october, there will diversified across the globe. the fact the yen is weakening has really helped profitability by tremendous amount.
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call the number on your screen now! liz: here is your fox news market check. check out shares of financial big one goldman sachs. moving about 4% higher, jpmorgan higher as well. the best level since june of 2011. smashing fourth-quarter earnings estimate. so you have two very big names. it's not just the big ones from its regional banks as well. pinnacle financial announced earnings after the bell
yesterday. profits doubled, margins rose, which is not what you save a lot of these other names. margins rose for the minds or a quarter. what are they doing right? joining me now in a fox business exclusive is pinnacle ceo and president terry turner. the stock has done well. it is up 19% year-over-year. let's talk about some of the details of his earnings report. you did quite well, but there were some issues were about myself that he really doubled your eps with the same quarter year over year. what were the two because drivers were the numbers assigned? >> i think the two biggest drivers are we are starting to see commercial activities across the nation are so slow.
a lot of that has to do with market share movement as opposed to economic growth. that has helped us. the second thing is an interest margin, we have had about nine quarters of expansion in the interest margin. and a lot of that has to do with driving down the cost of funds. we have been efficient air. and the rest of it gets back to loan and bond yields. liz: i don't mean to wave my arms towards you, i want them to hear this print this issue is something that really spooked investors when wanting to a name like wells fargo. how are you considerably a little guy, able to pull off what they wells fargo couldn't? your loans were up about 13%. deposit of about 40%. i know that in a truly healthy lending deposit, it should be somewhere along the lines of 100%. what are you doing right when it comes to the net interest margin >> welcome the biggest component
in our margin has really been driving down the cost of funds. i think it is a important that the industry is watching for liquidity and some have been less aggressive. we have also had some improvement in asset quality, which has been helpful to us in terms of nonperforming assets and nonperforming loans and so forth. so i think those two things in large measure have enabled us to continue widening margin. liz: at some point you actually look at your balance sheets and said we need to figure out how to bring costs down. something that washington is not doing. this fiscal cliff drama, that was kind of a big issue dealt with and not to the liking of many people. but what for bankers do you need
to get washington. >> it clearly doesn't provide a long-term solution. we are primarily a business thing. see what can i just ask as well about the fed? quantitative easing part three -- were they put by eight number of financial instruments, will that hurt you? into sort of a double-edged sword. sometimes we need to throw away the crutches and let people walk on her own. >> i don't think that there's anything wrong with that. we need to get back to the issue of confidence to provide confidence to business owners. i don't think you will see an escalation in economic growth. most people continue to dampen their outlooks.
liz: are you going to see any games in nashville while you're there? >> go predators. [laughter] liz: a hockey fan, terry turner, thank you so much for joining us. ebay is getting set to report earnings after the bell today. have you bought something on this website in the last quarter. they delivered four consecutive surprises and could they deliver another? we will find out on "after the bell." what is the other thing that will drive ebay broke this quarter? we will take a look at all of that next what are you doing?
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reporter: good afternoon, i am sandra smith with your fox business breed. with less than 30 minutes in the trading day, the dow was down 32, nasdaq and s&p rose higher. the international monetary fund has approved more than 4 billion-dollar loans installment agrees. the decision follows the approval this week of an emergency bill ratifying dozens of conditions set by bail out lenders. the economy is being kept afloat by international eurozone members in the imf. and if you thought that credit card debt was for young adults, think again. older americans applied for more
credit cards but pay down their debt easier. half of the older generation are seeking help from credit counseling services. we continue our countdown to the closing bell with list placement liz: 20 minutes away from the fourth quarter earnings release. what should investors be expecting? let's bring in our very own shibani joshi. >> and the investors the light of the last year, up 70%. the stock moving marginally higher, and earnings shows the strong finish to a transformational year. what's going on is that up until now, the growth has been fueled by paypal. this marketplace business that
has taken place thanks to the mobile application. about 2 million listeners are uploaded using the mobile platform every single week. there you go, you can find whatever you need on ebay. the one we will have those numbers on "after the bell." let's head to the new york stock exchange and bring in nicole
petallides. >> thank you for joining us. i am in. [talking over each other] >> okay, let's talk about hewlett-packard and dell. i am standing at hewlett-packard, so it's good that one first. a three and a quarter percent. it is a tech services company. so now the question is what will happen with this? on the other hand, take a look here at dell, which has been running on the potential buyout, pulling back a little bit.
lida seems to be the silverlake is very interested in dell. that includes bank of america, barclays, and others. of course, such a big portion of dell corporation. back in 2010, he had considered may be making this thing private. liz: guess what i found on ebay. gina -- jean nate. 30-ounce fragrance. very retro fragrance.
liz: a market check right now. the battle of the heads. the hedge fund battle. the stock is done now. it has been pretty volatile since the news broke that tenants before 3:00 p.m. eastern. charlie gasparino like you guys on this last week. he was all over saying that icon is entering into the fray. they reported that about an hour ago. adding another layer to the hedge fund morning. taking a position, carl icahn, he says that his state is about a billion calling herbalife if your mid-scheme.
taking the other side of that trade, he went long. were you one of those people that got ranted at the end of the year due to the fiscal cliff? you ditched your stocks and your sherbet? it may be time to re-examine. jay bowen joins me now from bowen hanes. but even? >> we think it's important to let global company is how dividends. global gdp should expand as what we think quite a bit faster than u.s. gdp.
japan has been saying if you can find those companies it's not just emerging markets. something like 100 countries around the world. yields about 3.1% in the other evidence that i want to make is a major trend going forward. and it's going to express itself in 2013. the dividend will account for a larger share of the stock's total economy. liz: so the stock actually went up in price? >> i think we are headed back
towards the 50s. it is an important trend and i think we are trending towards 50% there. liz: it's like we've been slammed in hammer. it's now a $4.36 price here. we like maggie, she's a smart leader, but you can't -- you talk about the dividends? >> it's important to look at the company. in total it has to have appreciation potential.
liz: why canada? >> they surpass the u.s. on the economic freedom index. they are ahead of us now. liz: what are the metrics for the economic freedom? >> is a whole monetary fiscal policy. liz: is a great for businesses? >> it is. they ought to be the fiscal model of the g7. if you look at corporate taxes, they are all trending in the right direction from a public standpoint. the country has a lot of natural resources. liz: but you don't want to become like australia.
>> in terms of being a natural resource country, they do have a lot of natural resources companies, but they have other superb financial companies too. the banks and get into all the trouble that we did. liz: canada did not allow -- they have enough good regulations, not overregulated that didn't allow their regulations to take a bad stance. >> that's right, we like nova scotia. it's a very interesting story. one more thing, it is possible
to have relations with china through canada. second-largest exporter and that is key to fueling the industry -- the steel industry. liz: that's right, huge in canada and natural technology resources. jay, nice to see you, thank you for joining us. my parents are canadian. don't be all excited that they will be that we mention canada. shares of one company traveling higher today, we will tell you which luggage maker is doing well.
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up 7%. i got a couple of these. you can jump on them like gorillas, and nothing happens. i'm pretty good at jumping on things to see if i can break them, david. david: i'm not going there. liz: 7%. why? william blair reiterating a buy. not making a new call. a reiteration of a buy. the stock while not at session highs is pretty near session highs. by the way the peak of the stock since it went public last year, north of $26. so it has come back down since its ipo not a bad move here to date for tumi. market is mixed. let's get it ready for david asman as we get ready for "after the bell". david: did you ever make a bet on ebay using a tablet? a lot of people, 800,000 of those bets are now being made. they're expecting to increase that amount. of course paypal affecting their stock tremendously. let's